FTSE continues gains trend

The London market made further gains today despite the majority of investors being kept on the sidelines by a lack of corporate news.

The FTSE 100 Index rose by as much as 25 points in early business before settling back to stand 5.6 points higher at 4459.5 at mid-morning.

With lower oil prices again helping London’s progress, the Footsie remained on course to record its seventh positive close in a row and extend the longest winning run since January this year.

The mood was helped by the first revision of official GDP figures, which were left unchanged with annual growth of 3.7% in the second quarter.

There was little in the way of corporate news to inspire the market, although energy group National Grid Transco hit the top of the Footsie risers board with a 8.5p gain to 464p after broker Merrill Lynch said it was keeping its buy rating on the stock.

Merrill said the long awaited sale of up to four of the group’s regional gas distribution businesses appeared to be imminent, potentially realising more than £5bn (€7.4bn).

Oil giants BP and Shell were helping to prop up the top flight, with the market heavyweights up 8.5p and 4p at 493.5p and 403.75p respectively.

Meanwhile, dairy group Robert Wiseman was celebrating its second major milk contract in as many days after sealing a new deal with supermarket giant Tesco.

Shares in the FTSE Smallcap firm rose almost 7% or 15p to 238.5p, but Dairy Crest went into reverse after losing out in the reshuffle.

The Surrey-based firm slumped 17% or 67p to 317p as it warned the loss of its existing Tesco contract would knock £15m (€22.3m) a year from annual profits. Tesco shares lost an earlier gain to stand a penny lower at 265.75p.